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Boat and Boat Motor TaxFrequently Asked Questions

The tax is imposed on every retail sale of a boat that is 65 feet in length or less measured from the tip of the bow in a straight line to the stern, including sailboats, inboards, outboards and personal watercraft.

The tax does not apply to canoes, kayaks, inflatable boats, punts or boats designed to be propelled only by a paddle or pole. These crafts and others excluded from boat tax are subject to Texas Limited Sales and Use Tax.

The tax is imposed on every retail sale of a gasoline or diesel internal combustion motor.

The tax does not apply to electric motors (such as trolling motors), unless an electric motor is attached to a boat subject to boat tax and is sold with that boat for a single sales price. Electric motors are subject to Texas Limited Sales and Use Tax.

The taxable value is the total amount paid for a boat or boat motor and includes all accessories attached before or at the time of sale, transportation costs before the sale and any U.S. manufacturer's or importer's excise taxes.

HB855 Browser Statement

In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.